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Your company’s executive vice president circulates a memo to the firm’s top management in which he argues for a reduction in the price of the firm’s product. He says a price cut will increase the firm’s sales and profits.
(1) As the head of marketing you respond with a memo pointing out that the price elasticity of demand for the firm’s product is about -0.5. Why is this fact relevant?
(2) The firm’s president concurs with the opinion of the executive vice-president. Is he correct?
Determine which country has absolute advantage in production of tanks and explain why is it this country?
Why might some people claim that the breakfast cereal industry is monopolistically competitive but that the automobile industry is an oligopoly? In both cases, about eight to ten firms dominate the industry.
At the fishing hole, people come from all around to catch fish to sell at the fish market. The total number of fish caught is F=10x-(x^2) where x is the number of fishermen
Suppose average movie attendance is 250 million tickets when prices are $7 a ticket and 200 million when prices are $9 a ticket.
Suppose that instead of maximizing profit, the firm wants to maximize total revenue. Using algebra determine the optimal output, price, profit and revenue for the firm.
It is clear that more education results in higher average life time earnings. Therefore, can we conclude that it is always a good investment to spend more income getting more education
Marketing Strategy :Value Proposition,Critical Issues,Financial Objectives,Marketing Objectives,Target Market Strategy,Messaging,Branding
Suppose a special tax was introduced that used the value of one's automobile as the tax base. Each person would pay taxes equal to 10 percent of the value of his or her car. What distortions do you think would appear in the economy if such a tax w..
For an interest rate of 12% and a lifetime of 10 years, which proposal should be selected and calculate your answer in three ways
Demonstrate graphically the cost of income taxation of 30% to consumers and producers for an income of $27,908 and how does the taxation change if the income was $220,874?
You have been put in charge of electricity restructuring on the Isle of Mann. As part of the restructuring plan, it has been suggested to you that all wholesale electricity should be sold on the spot market at a price that is set every single min..
Three students have each saved $1000. Each has an investment opportunity in which she can invest up to $2000. Here are the rates of return on the students' investment projects: Minji: 5% Yanrong: 8% Dorothy: 20%
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